Daily Democrat News Desk
Another controversy surrounds the government’s treatment of Ghanaian owned mining firms with the Co-Chair of the Ghana Extractive Industries Transparency Initiative (GHEITI) Dr Steve Manteaw warning that there is a need to avoid “a very hostile attitude”.
Dr Manteaw has warned the government that it should not revoke the mining lease of Northern Ashanti Mines due to outstanding statutory payments and that debt is not a reason to close down mining firms.
He has challenged the government to talk to the firm and warned that if they do close down local mining firms it will hurt President John Dramani Mahama’s initiatives to increase local involvement in the extractive industry.
The outspoken extractive sector expert made the comments while speaking to Joy FM’s Top Story programme (Monitored by the Daily Democrat) after the Minerals Commission claimed that Northern Ashanti Mines owe over US$8.38 million in statutory payments.
Manteaw said that the government needs to differentiate between a debt and “major malpractice”.
“I don’t think it’s a reason to revoke licence. It really isn’t. If there are major malpractice then we can talk about revoking licence. But if the person owes you money then sit down and talk to them,” he said.
This comes amid increased pressure on the government to ensure that indigenous Ghanaian businesses are given more of a say in the country’s mineral industry.
DON’T DESTROY WHAT YOU WANT TO BUILD!
Manteaw said that keeping Northern Ashanti Mines open would be in the best interests of the state as they will be able to generate revenue to pay their debts.
“There is not much point in closing a business because there is some money owed. Sit down and negotiate with them to pay a reasonable amount,” he said.
“You should want them to exist and thrive so that they can pay you.”
Manteaw also warned that this could make people believe that Ghanaian owned mines are being treated unfairly.
He warned that this could cause problems with the government’s intentions to increase local involvement. The government needs to provide local investors with support, funding and a stable environment to compete with international mining giants.
“A Ghanaian mining company might have a problem but once you want to localise our mining industry you don’t go and revoke their leases. You look at the issues we are facing and support them,” he said.
ADAMUS, KONONGO: ONE PROBLEM, ONE SOLUTION!
Manteaw has challenged the government to look at the Northern Ashanti Mines issue and the problems faced by Adamus Resources in Ellembelle.
He said that these should not be seen as two separate issues.
“We shouldn’t look at Konongo as a separate issue. For me it’s one issue. They are in debt and having issues,” he said.
This raises questions about whether the government are treating the issue in a way that will help achieve their goal of increasing local ownership.
INVESTORS MAY BE PUT OFF
Manteaw also warned that revoking leases and closing down local mines due to debt issues could put investors off.
Potential investors and creditors may be unwilling to invest in Ghanaian mining firms if they feel that they will lose their mining concession quickly.
He has directly challenged the Minister for Lands and Natural Resources to rethink their approach to the Northern Ashanti Mines case and attempt to reach a less hostile agreement.
Although he recognised that the government need to hold companies to account for breaking mining laws, he added that companies facing debt issues should be given the chance to negotiate.
He finished by warning that the current approach could cause problems for the government’s credibility.
“It’s not looking good for the government,” he said.
The government is under pressure to ensure that they are treating the Konongo mining issue fairly and ensuring that they are protecting statutory revenue while also keeping their promise to give Ghanaian businesses a bigger role in the country’s mineral wealth.
